Bad Credit No Money Down

Written By : Josh Jones on December 5, 2019

Can you get guaranteed car loans for bad credit and no down payment?

There may be some instances where you need to buy a car but your credit score is not sufficient.  There are also times where you may not have enough down payments to facilitate the purchase of a new or used vehicle.  If you are in any of these situations, do not despair. There are lenders who are willing to help people with poor credit and no down payment purchase their dream car.

Compariloan is one of these lenders.  Every consumer’s situation is different, which means that we do not offer guaranteed car loans for bad credit and no down payment. However, we have worked with consumers who have poor credit for years, helping them finance a vehicle with little or no money down. And we are able to do the same for every consumer who approaches us.  But even before applying for the loan with us, it is important to equip yourself with important information concerning car loans with bad credit no money down.

Initial Down Payment

A trade in counts

If you have a car that you are willing to trade, the trade in value can also act as a down payment. Ensure that you check the car’s current trade-in value in different sites like and to get a clue on the amount you can get.

The difference between ‘down payment’ and ‘no down payment’

One benefit of putting a down payment on car loans is that it reduces your loan amount and the total cost of financing.  Most lenders require borrowers to put a down payment of at least 20% of the total value of the car. But even consumers with good credit scores may not have that sort of money at hand. Usually, the average down payment for both used and new cars is around 12%.

Now let’s see how a down payment will eventually affect the car financing costs.

A car shopper falls in love with a used car worth $15,000.  He wants to finance the vehicle with a title loan which has an APR of 8% and a loan term of 60 months. No down payment is required for the loan.  In this case, the total interest that he will have to part with will be $3,249, which brings the total cost of the loan to $18,249.

If the same lender puts a down payment of $1,800, the loan amount will reduce to $13,200. The finance charge in this scenario will be $2, 859. Eventually, this auto loan borrower will save up to $390. The total cost of the loan will now reduce to $16,059

Speaking of monthly repayments, the loan with no down payment would be $304, and if he puts a down payment, the monthly repayments will reduce to $268.


Even a small amount matters

When it comes to auto loans, there isn’t a specific rule guiding the amount of down payment that you should pay. It is all about what you are able to afford and whether the lender is willing to accept it.  A down payment of as little as $500 will increase your chances of approval and also reduce the loan cost.

Low and no money down financing by Compariloan

At Compariloan, we offer a number of options to auto loan borrowers with bad credit and low down payment. As we already stated, individual needs are different and so are their credit scores. If your FICO score falls between 550 and 650, you can qualify for a down payment of as little as $500. In some cases, you may not even have to put the down payment.  Once you get approved, the amount of down payment is what will determine the loan terms, including the APR that you qualify for. Please also consider Buy Here Pay Here dealerships  and Buy Here Pay Here Car Lots options.

Get instant decision

See if you qualify for an online car loan. We have a short and easy application process, which will only take a few minutes to complete. You will then get instant feedback on the application. If you are approved, we will provide multiple offers, all of which are tailored to your needs. You only need to choose the best offer and start the car shopping experience with confidence.

Apply for a car loan online today!

At a glance…

Generally, bad or poor credit is a FICO score of below 600. This is according to different sources like the Consumer Federation of America,,, National Credit Reporting Association, and Investopedia among others.  FICO score of 620 is identified as the ‘cutoff ‘for qualified borrowers. However, FICO scores are not the only determinants in lending decisions by Compariloan.

Try our Title Loans

If you already own a vehichle and would like to use that as collateral to get finance we also do car title loans. This is a great way to release equity that you own in yoiur vehicle. People often are searching for a car title loans near me. We can do this statewide in the USA.